China’s Love with Tether (USDT) Signals a Bullish Trend in the Cryptocurrency Market
Chinese cryptocurrency traders are building a strong trading relationship with Tether (USDT) as the stable coin remains the best traded asset in the crypto world. According to Coinmarketcap charts, the token holds 33.63% of all trading volume across the cryptocurrency exchanges. Most of this volume seems to be originating from the Asian traders as the ban of on ramp fiat channels persists.
Bullish signs? Chart showing USDT robust market cap growth (Source: Coinmarketcap)
China’s love for Tether USDT trades
Tether (USDT) has recorded its highest market capitalization figure ever during the month of August hitting the $4 billion dollar mark. USDT remains a popular option for investors in China to hold their digital asset value and buy other cryptocurrencies, as the Chinese investors sense a potential bull run in the market.
In an interview, one of the Chinese investors spoke on the effect of USDT in the cryptocurrency industry in the country.
Choosing to speak anonymously, she said,
“Tether has truly good liquidity in China. One of the primary use-cases is a fiat on- and off-ramp for crypto trading. I did also see some people using tether for legit business use-cases like cross-border trading.”
A bullish case for Tether
The increasing love for Tether in China is a result of the investors’ bullish sentiments, rather than the technological developments, regulations or infrastructure.
A trader spoke to Coindesk in an exclusive report,
“Tether is the easiest way to hold a relatively stable volume of value at an exchange that doesn’t accept dollars. It’s much more about that [USDT] network effect than any technology, infrastructure or other advantage.”
With Tether set to release a Chinese Yuan stable coin, CHNT, in the “near future”, China may be setting a trend for a bullish trend in the closing months of 2019.